Which Agricultural and Industrial Processes Attract Relief from the Aggregates Levy?

HM Customs & Excise announced in a business brief published on 15 November 2002 details of changes in the definitions of certain agricultural and industrial processes which attract relief from the Aggregates levy. These changes are to take effect from 1 April 2003.

The changes have been brought in as a result of concerns expressed by the construction industry that certain areas of the Aggregates levy legislation and guidance lack clarity.

The changes to note are as follows:

- A change to make it clear that water filtration is relieved from duty only if it is part of the process of providing drinking water

- Oil filtration is not relieved from the Aggregates levy

- Clarification of the wording that relieves from duty  processes used for producing and processing food

- Clarification that aggregate which is used as a "propping agent" in oil exploration is a process attracting relief from duty - this corrects an error in the technical term previously used in the legislation and guidance

- Use of aggregate as agricultural lime is to be claimed under the relief available for aggregate used in the manufacture of additives for soil

- Clarification that the relief from the levy for using aggregate as "growing media", for example compost, is limited to agricultural and horticultural use. The relief is not available for non-agricultural processes, such as the laying of sports pitches.

HM Customs & Excise has indicated that a public notice will be issued in April 2003 giving full technical details of exactly what agricultural and industrial processes attract relief from the Aggregates levy.
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